Why Guess? Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel retailer Guess? (NYSE: GES  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Guess? and see what CAPS investors are saying about the stock right now.

Guess? facts

   

Headquarters (founded)

Los Angeles (1981)

Market Cap

$2.2 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$2.6 billion

Management

Co-Founder/CEO Paul Marciano

Interim CFO Nigel Kershaw

Return on Equity (average, past 3 years)

22%

Cash/Debt

$294.6 million / $11.4 million

Dividend Yield

3.1%

Competitors

Abercrombie & Fitch (NYSE: ANF  )

Gap (NYSE: GPS  )

Ralph Lauren (NYSE: RL  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 781 members who have rated Guess? believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Seattleldg, succinctly summed up the bull case for our community:

[Guess?] derives about half of its revenue from North America and half from overseas. Asia has been a big growth driver recently posting annual growth rates over 25%. Guess has a significant presence in Europe (especially Italy) which seems to have investors scared. However, growth in Owner Earnings paint a pretty rosy picture. The 5 year compound annual growth rate is 10% while the 10 year growth rate is 22%. With ... [little debt] and a 3.1% dividend yield, [Guess?] offers a huge margin of safety.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Guess? may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


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